Revealed: the North Wales hotspots for second homes
THE COUNTIES WHERE 1 IN 3 BUYERS WON’T LIVE IN THE PROPERTIES
GWYNEDD and Anglesey are the second home hotspots in Wales – with one in three homes sold to owners who won’t live in the property.
The Welsh Revenue Authority has revealed its first annual Land Transaction Tax statistics after it replaced Stamp Duty in Wales last year.
It has broken down the figures to a county level, which has helped shed some light on the property market in each part of the nation.
When it comes to “higher rate transactions”, the figures for the year up to March 31 are illuminating.
These figures include the purchase of second homes or holiday homes, buy-to-let properties, and purchases by companies, such as social housing providers.
The percentage of homes sold last year in
Gwynedd that came under the higher rate is 37% – more than double that seen in Flintshire at 18%.
On Anglesey the figure was 33%, while the overall Wales average was 23%.
The other North Wales county above the Welsh average was Conwy at 26%.
Other figures released showed that Anglesey had the highest tax paid per residential property in North Wales – at an average of just over £4,000, with Gwynedd second at £3,600.
This reflected the higher figure paid by people in the “higher rate transaction” band.
Those buying a property who already own one or more residential properties pay tax of 3% of the value up to £180,000 – rising to 6.5% for the portion between £180,000 to £250,000.
This compares to zero paid on main residential properties up to £180,000 and 3.5% on the next portion. The average figure paid in Wales was £2,800. Dwyfor Meirionnydd MP Liz Saville Roberts MP said: “At a time of growing economic inequality across the UK, the impact of an increasing number of second homes on coastal and rural communities in Gwynedd and Môn will only worsen an already fragile situation.
“It is evident we need to build new homes in those areas where the local market cries out for additional housing and to consider radical policies in relation to second home ownership in those areas where the percentage of second homes is unsustainable.”
Estate agent Melfyn Williams, from Williams & Goodwin, said there were advantages of people investing in homes in the area.
He said often they were bringing empty homes back into use and there was “nothing worse than an empty house”.
He added: “We have to remember the buy-tolet market in Bangor also distorts the market in Bangor and the surrounding area.
“The market overall is working well, although we would like to see more homes coming on the market.”
He also believes the next set of figures could show a changing picture.
“The last six months has seen an increase in first-time buyers and fewer investors in the market,” he said.
“There has been a lot of tinkering in the market and I think this is putting some people off.”
The Welsh Revenue Authority report stated that analysis allowed them to draw a “tentative conclusion” that buy-to-let properties are at least as prevalent as second or holiday homes as a factor in why the higher rates of tax are charged.